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A comment on Why Groupon Sucks for Merchants and LivingSocial Doesn't. Parent comment

Re:Why Groupon Sucks for Merchants and LivingSocial Doesn't by fookyong on Friday April 22, 2011 @01:42AM (#2473373)
The accounting term for this is "breakage".

http://en.wikipedia.org/wiki/Breakage

Any business that runs a coupon campaign will usually account for breakage. It's factored into the numbers of whether a campaign is executable or not.

The percentage will vary for every business / every campaign even for the same business.

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Re:Why Groupon Sucks for Merchants and LivingSocial Doesn't by roel_v on Friday April 22, 2011 @04:02AM (#2473529)
"The percentage will vary for every business / every campaign even for the same business."

Obviously, but for the same business, controlling for external factors (season, ...) and with sufficiently large sample sizes of customers, there must be an indicative spread?

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